Gst implication on merging of two firms
rajesh jakka
(Querist) 19 February 2018
This query is : Resolved
Dear Expert,
good evening,
we have been running our firm for last 9 years and our competitors have been running their firm for last 5 years and now they want to include their firm into ours, hence i request you to kindly tell me the procedure under GST act on the closing stock
some are saying the entire closing stock of my competitors has to be written as sale to my firm and the we need to claim the same as input, is it correct?
some are saying, it will be a stock transfer since entire firm is going to merge into my firm, hence they are bringing their stock as their capital into our firm, hence it shall not be considered as sale,
hence please let me know the procedure and the method to be adopted for merging and stock valuation,
thanking you,
yours truly,
rajesh jakka
sanjeev kumar goel
(Expert) 20 February 2018
Dear Rajesh first of all clear the constitution of yours as well as your compititor's firm. It is proprietorship or partnership or pvt ltd? Then only I will be available to reply you properly.
rajesh jakka
(Querist) 20 February 2018
sir,
thank you for your reply and
ours is partnership firm and my competitor is sole proprietorship (whose going to merge his firm into ours)
Dr J C Vashista
(Expert) 21 February 2018
Commercial query has to be consulted with a local prudent lawyer.
